5 Best Term Plans for Family in the UAE -Types & Benefits

Term insurance is an excellent risk cover plan for individuals who want to provide financial protection to their families. These insurance plans offer insurance cover for a specific term and give a sum assured to the beneficiary upon the policyholder’s demise.

Term insurance is the most affordable form of critical illness and life insurance policy. It has become popular in recent years, thanks to online bloggers and aggregators who made people aware of this type of insurance plan in the first place.

You must consider buying a term insurance plan to make your family capable enough to deal with their financial needs even when you are no longer available to provide for them.

Here are a few more reasons why you must buy a term plan for your family.

• Fixed insurance premium
• Easy to understand plans
• Ideal for fulfilling financial needs
• Choice of additional riders
• Lower insurance premium

Term insurance in the UAE offers insurance cover for death events and partial and permanent critical illnesses based on the terms and conditions.

Let us go ahead and learn the different types of term insurance plans to help you discover the one that best fits your requirements. In addition, we will also take you through the best term plans for a family in the UAE. The list of these plans will give you an idea of the unique features and benefits that term insurance in the UAE offer.

Best Term Plans for Families in the UAE

Here are the five best term insurance plans to buy for families in the UAE.

1- Term Insurance Plan – Live Life (Insurance Company – Metlife)

Live Life is one of the best term insurances to buy in the UAE for protecting your family. With a lower insurance premium amount, the term insurance plan offers a higher sum assured for your family if you cannot provide for them due to some critical illness or an unfortunate demise.

The best part about the insurance plan is the term and the age cover it offers. You can easily opt for this term plan until you turn 30 and enjoy the benefits of the plan until the age of 85 years.

The term insurance plan allows policyholders to choose from three payment options – Single, Regular and Limited Pay.

As a cherry on the top of the cake, you can add a unique rider to this term insurance plan. The rider offers the policyholder a lifetime of monthly income if they become partial or permanently disable due to an accident or illness.

The term insurance plan add-ons include a medical discount card and a free second medical opinion.

2- Term Insurance Plan – Hemaya Plus (Insurance Company – Salama Insurance)

Hemaya Plus is one of the best family Takaful term insurance plans offered by SALAMA – Islamic Arab Insurance Company. The term insurance plan is Shariah-Compliant based on Islamic law.

Besides the family income benefit, the Hemaya Plus term insurance plan also benefits policyholders who suffer partial or permanent disability caused by accident. The best part about the term insurance plan is its 100 years of expiry age. Another good thing is that the plan is suitable for both individuals and corporate clients.

Here are some more features of this excellent term insurance plan in the UAE.

• A grace period of 90 days
• Minimum payment term of 2 years
• Entry age of 18 years up to 74 years
• Available in AED and USD
• Free look period of 30 days starting from the issue date

Hemaya Plus offers Single and Regular payment methods for the insured individuals to pay their premiums. This is the best term plan for residents looking for a Shariah-approved family protection plan.

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3- Term Insurance Plan – Pure Protection (Insurance Company – Noor Takaful)

Pure Protection Term Insurance Plan is one of the best term plans with higher returns. With maximum coverage benefits, the plan offers the same insurance rates for smokers and non-smokers. 

The plan enables the policyholders to follow their dreams and provide their families with enough funds to survive even when they are not around. The best part about the term insurance plan is that it can be used to make different kinds of financial payments, including the family’s regular expenses, loan repayments, etc.

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This is the best term plan that offers coverage for death benefits due to multiple events, including accidents and illnesses. Not just that, the plan also offers 20 per cent of the sum assured up to AED 150,000 for terminal illnesses. The entry age for the term insurance plan falls between 18 and 60 years.

The best part about this term insurance plan is that the policyholders can utilise the benefits without undergoing any medical check-ups.

4- Term Insurance Plan – Fixed Term Plan (Insurance Company – Takaful Emarat )

Fixed Term Plan is one of the best term plans for families in the UAE. The plan has been specially designed to offer financial cover for the policyholder’s family. It comes with flexible tenure options and can be opted in multiple currencies, including AED and USD. One of the excellent features of the term insurance plan is that it offers insurance cover across the globe. This means you get the insurance benefits being anywhere in the world if you are a UAE resident.

The term plan for family comes with a fixed contribution throughout the term. However, it offers the flexibility of paying monthly, quarterly, semi-annually and annually for the policyholders.

You can also add unique riders to the term plan based on your medical needs. The riders include cover for permanent and partial disability, accidental death, and critical illness benefits.

The entry age for this term plan falls between 18 and 65 years. The term plan works like a shield for the family members when the policyholder is not around.

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5- Term Insurance Plan – Level Term (Insurance Company – Alliance Insurance)

Level Term Insurance Plan is one of the best term plans when it comes to lower premiums with higher returns. The term plan for the family offers a sum assured value of up to AED 1 million for the policyholders. Being one of the most useful term insurances in the UAE, it offers excellent benefits with a reasonable insurance premium amount that remains the same throughout the year.

The minimum and maximum tenure for the level term plan is five years and 30 years, respectively. The best part about this term plan is that it can be converted into a life insurance policy depending upon the client’s needs. However, the conversion can only be done before the policy term expires.

Benefits of Buying a Term Plan for Family

Here are some significant benefits of buying a term plan for your family.

1. Fulfills Your Family’s Plans

If you are the only earning member of your family, it is your responsibility to provide your family members with the resources to achieve their goals and fulfill their plans. From your child’s education to building your own house, you have to be deliberative about everything. However, planning is not all you need to do. You must have the funds to execute your plans. You must prepare yourself and your family for unforeseen scenarios.

Life can be uncertain, and it can anytime throw unwanted surprises. Losing a loved one or the untimely demise of an earning member can affect the family’s future to an extreme level. But the best term plan for your family can help them get through such circumstances and enable them to deal with all their expenses. It can help protect your family members’ dreams and help them materialise their plans smoothly in every situation.

2. Simple to Understand and Purchase

Term insurance in the UAE is easy to understand as it has a simple process of paying out premiums monthly or yearly. The policyholders get to choose the term of premium payments based on their financial preferences. Most insurance companies have a simple procedure for starting a term insurance policy. The nominee can be anyone from the family, including the parents, spouse, siblings, or children.

Another good thing about term insurance in the UAE is that they offer a higher sum assured at a reasonable amount of insurance premium. This is why financially cautious people make sure to have at least one term insurance policy in their set of insurance policies.

3. Safeguards Your Family from Financial Crisis

As the head of the family, you might have taken some loans such as home loans, car loans, personal loans, etc. to give your family a strong foundation and a bright future. The repayment of these loans may take a long time. Additionally, you may have been taking care of your credit card bills, EMIs, etc. every month. All these debts would be a surprise for your family members once they get to know about them after your demise.

The term insurance in the UAE can help your family members take care of your debts, loans, bills, etc. that you took while taking care of them. The term insurance policy can safeguard your family members’ lives if something unexpectedly wrong happens. The best part about the term insurance policy is that the sum assured provided to the beneficiary can be used to manage any kind of finances.

It can help your family members deal with their financial liabilities without any difficulty. Besides, it also ensures that your family maintains their standard of living even when you are no longer around to provide them with the essentials.

4. Offers the Best Deals for Young People

Most insurance companies offer lower insurance premiums for young-aged policyholders. As the premium amount of the insurance policy stays the same throughout the term, young people can get a good deal out of it. They can get the best term plan at a lower premium and keep on reaping the benefits of the policy even as their age increases.

Additionally, there are low chances of getting the insurance policy application rejected at a young age. As there are no health complications or severe medical conditions at a young age, the policyholders can get better deals. The earlier you get the term insurance policy, the better benefits you get. 

5. Enables You to Achieve Your Goals Responsibly

At this stage of life, when you have a handful of responsibilities, you might want to do something adventurous. However, before you even consider pursuing an adventure, you must secure your family members financially.

For example, if you want to start a new business and invest all your savings into it, you may have to quit your job to pursue this dream. So shouldn’t you first buy a term plan for your family to secure their future before you take the risk of not having a stable income for a long time? And the best part is that you can also use your term insurance policy as collateral for some loans.

Types of Term Insurance Plans in the UAE

The insurance companies in the UAE offer different types of term plans for families based on the users’ preferences. Here is the list of plans.

1. Basic Term Insurance Plan

Basic Term Insurance plans offer a higher sum assured at a reasonable amount of premium. Based on the policy’s terms and conditions, the nominee gets the lump sum amount of insurance cover in a basic term insurance plan. The sum assured in the basic term insurance depends on the amount the policyholder had chosen at the time of purchasing the policy.

2. Level Term Insurance Plan

Level Terms are the best term plans that offer the same premium amount throughout the policy term. It provides different payment methods to help users make premium payments based on their financial preferences.

Here is the list of variants the Level Term Insurance Plan offers.

• Single Pay: As the name says, the policyholder needs to pay the whole insurance amount at the start of the policy in this variant.
• Regular Pay: In this payment method, the policyholder needs to make regular monthly or yearly payments that they agreed to at the time of purchase.
• Limited Pay: In this variant, the insurance premium needs to be paid for a limited time while the policy term continues for a longer time.
• Return of Premium: In this type of payment method, the insurance company returns a percentage of already paid premiums to the policyholder at the end of the policy period.

3. Group Term Insurance Plan

This term insurance policy is designed for multiple policyholders. The group term insurance plan offers equal benefits for all the policy members. In the UAE, these plans are purchased primarily by the companies for their employees.

4. Annual Renewable Term Insurance Plan

This is a term insurance plan where insurance premium changes after a specific term. The annual renewable term insurance plans are cheaper in comparison to any other type of term insurance plan. However, policyholders need to pay higher premiums if they buy the term insurance plan for a longer duration.

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Final Thoughts

Now that you know almost everything you need to know about term plans, it’s time for you to figure out your financial needs and choose the plan with the maximum benefits. Make sure you visit the online portals of several insurance companies that offer term plans for families and compare the benefits of each one of them before making your decision.

The primary things to consider are death benefits, the claim process, etc. Make sure your chosen term plan has an easy claim process, as it will help your family get the sum assured without any difficulties.

Try to choose the best term plan for your family with a higher sum assured. Although no amount of funds can lessen the pain of losing a loved one, the considerable sum assured will help decline the financial burden.